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Re: [gnso-vi-feb10] VI - An RSP Question..

  • To: tim@xxxxxxxxxxx
  • Subject: Re: [gnso-vi-feb10] VI - An RSP Question..
  • From: Graham Chynoweth <gchynoweth@xxxxxxx>
  • Date: Wed, 26 May 2010 11:32:54 -0400 (EDT)

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style='font-family: Times New Roman; font-size: 12pt; color: 
#000000'>All,<br><br>Just an idea, but given that there seems to be a bit of a 
stalemate here, perhaps I could offer a more fruitful line of debate.&nbsp; 
<br><br>I'll start with a question: is the *only* and/or *best* way to avoid 
the gaming that we fear enforcing vertical integration?&nbsp;&nbsp; To phrase 
this another way, knowing that we all agree on the nature of the problem (even 
if there disagreement as to its likelihood or impact), but have little 
agreement with respect to the particular solution (i.e., should we have any VI, 
and if so how much), perhaps we need to be a bit more creative about solving 
the problem.<br><br>If we don't have any consensus on this issue (and, 
currently, it seems safe to say that) it is ALL of our responsibility, as each 
of us is participating in this effort in good faith, to come up with new ideas 
of how to solve the problem we understand.&nbsp; One straw man idea that popped 
into my head was whether we could borrow from another area where corruption is 
a serious concern and concerned actors have been trying to regulate the problem 
away - politics.&nbsp;&nbsp; In the US there have long been laws about how to 
keep corporate money out of politics, but it has proven a huge regulatory 
challenge, for a variety of reasons not least because the actors in the game 
are smart  (and given the recent SCOTUS decision, a complex set of bounding 
rules).&nbsp; Part of the solution in this area has been to rely more on 
transparency and less on difficult to enforce prohibitions.&nbsp; <br><br>I am 
not necessarily sure how this approach fits into this context, but I am open to 
ideas and encourage folks to help me in thinking creatively.&nbsp; There has 
got to be a way to address the gaming/corruption evil in a way that doesn't 
rely on resolving what seems to be turning into a debate about who gets how 
much of this version of 'holy ground'.<br><br>Thanks,<br>Gray <br><br>Graham H. 
Chynoweth<br>General Counsel &amp; VP, Business Operations<br>Dynamic Network 
Services, Inc.<br>1230 Elm Street, 5th Floor<br>Manchester, NH 03101<br>(p) 
+1.603.296.1515<br>(e) gchynoweth@xxxxxxx<br>(w) 
http://www.dyn.com<br><br>Confidentiality Statement<br><br>Privileged and 
Confidential. The information contained in this electronic message and any 
attachments to this message are intended for the exclusive use of the 
addressee(s) and may contain confidential or privileged information. If you are 
not the intended recipient, please notify Dynamic Network Services, Inc. 
immediately at +1.603.668.4998 or reply to gchynoweth@xxxxxxx and destroy all 
copies of this message and any attachments. This message is not intended as an 
electronic signature.<br><br><br>----- Original Message -----<br>From: 
tim@xxxxxxxxxxx<br>To: "Milton L Mueller" &lt;mueller@xxxxxxx&gt;, 
owner-gnso-vi-feb10@xxxxxxxxx, "Ron Andruff" &lt;randruff@xxxxxxxxxxxxxxx&gt;, 
"Kathy Kleiman" &lt;kkleiman@xxxxxxx&gt;, "Graham Chynoweth" 
&lt;gchynoweth@xxxxxxx&gt;, "StattonHammock" 
&lt;shammock@xxxxxxxxxxxxxxxxxxxx&gt;<br>Cc: Gnso-vi-feb10@xxxxxxxxx<br>Sent: 
Wednesday, May 26, 2010 9:39:58 AM GMT -05:00 US/Canada Eastern<br>Subject: Re: 
[gnso-vi-feb10] VI - &nbsp;An RSP Question..<br><br>




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Milton,<br><br>You are likely right about not carrying on this argument. You 
are caught up in your incumbent conspiracy theories and clearly aren't 
interested in considering anything else.<br><br>Tim<br><hr><div><b>From: </b> 
Milton L Mueller &lt;mueller@xxxxxxx&gt;
</div><div><b>Date: </b>Wed, 26 May 2010 09:10:03 -0400</div><div><b>To: 
</b>tim@xxxxxxxxxxx&lt;tim@xxxxxxxxxxx&gt;; 
owner-gnso-vi-feb10@xxxxxxxxx&lt;owner-gnso-vi-feb10@xxxxxxxxx&gt;; Ron 
Andruff&lt;randruff@xxxxxxxxxxxxxxx&gt;; Kathy Kleiman&lt;kkleiman@xxxxxxx&gt;; 
'Graham Chynoweth'&lt;gchynoweth@xxxxxxx&gt;; 
'StattonHammock'&lt;shammock@xxxxxxxxxxxxxxxxxxxx&gt;</div><div><b>Cc: 
</b>Gnso-vi-feb10@xxxxxxxxx&lt;Gnso-vi-feb10@xxxxxxxxx&gt;</div><div><b>Subject:
 </b>RE: [gnso-vi-feb10] VI -  An RSP Question..</div><div><br></div>

<div class="Section1">

<p class="MsoNormal"><span style="font-size: 11pt; font-family: &quot;Courier 
New&quot;; color: olive;">Tim, we are arguing past each other. You don’t seem 
to understand
the point I am making. </span></p>

<p class="MsoNormal"><span style="font-size: 11pt; font-family: &quot;Courier 
New&quot;; color: olive;">However, I don’t think the argument is worth carrying 
on because I
clearly do understand the point you and other industry incumbents (Afilias,
etc.) are making, which is: </span></p>

<p class="MsoNormal"><span style="font-size: 11pt; font-family: &quot;Courier 
New&quot;; color: olive;">&nbsp;</span></p>

<p class="MsoNormal"><span style="font-size: 11pt; font-family: &quot;Courier 
New&quot;; color: olive;">“We are afraid of new sources of competition if we 
open the market
to new business models and as the biggest frogs in a small pond we are quite
comfortable with the way things are now, so we’re going to scare people into
being ‘as conservative as possible.’” </span></p>

<p class="MsoNormal"><span style="font-size: 11pt; font-family: &quot;Courier 
New&quot;; color: olive;">&nbsp;</span></p>

<p class="MsoNormal"><span style="font-size: 11pt; font-family: &quot;Courier 
New&quot;; color: olive;">Message received. No point in debating the niceties 
of market
power and competition policy. </span></p>

<p class="MsoNormal"><span style="font-size: 11pt; font-family: &quot;Courier 
New&quot;; color: olive;">&nbsp;</span></p>

<p class="MsoNormal"><span style="font-size: 11pt; font-family: &quot;Courier 
New&quot;; color: olive;">--MM</span></p>

<p class="MsoNormal"><span style="font-size: 11pt; font-family: &quot;Courier 
New&quot;; color: olive;">&nbsp;</span></p>

<div style="border-style: none none none solid; border-color: 
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<div>

<div style="border-style: solid none none; border-color: rgb(181, 196, 223) 
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padding: 3pt 0in 0in;">

<p class="MsoNormal"><b><span style="font-family: 
&quot;Tahoma&quot;,&quot;sans-serif&quot;;">From:</span></b><span 
style="font-family: &quot;Tahoma&quot;,&quot;sans-serif&quot;;"> tim@xxxxxxxxxxx
[mailto:tim@xxxxxxxxxxx] <br>
<b>Sent:</b> Tuesday, May 25, 2010 9:18 AM<br>
<b>To:</b> Milton L Mueller; owner-gnso-vi-feb10@xxxxxxxxx; Ron Andruff; Kathy
Kleiman; 'Graham Chynoweth'; 'StattonHammock'<br>
<b>Cc:</b> Gnso-vi-feb10@xxxxxxxxx<br>
<b>Subject:</b> Re: [gnso-vi-feb10] VI - An RSP Question..</span></p>

</div>

</div>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal"><span style="font-size: 12pt; font-family: &quot;Times New 
Roman&quot;,&quot;serif&quot;;">Can't
speak for Ron, but my point would be that if there had not been separation
rules it could be much worse.<br>
<br>
It has nothing to do with how successful a TLD is. That is just a misdirection.
It has to do with what the entities involved could do to game the situation.
Just because fewer registrants may be involved does not mean those registrants
should not be protected. And with dozens to hundreds of new TLDs the cumulative
effect could still be huge.<br>
<br>
Also, the TLDs may be small but the entities involved may not be, or have
positions in related markets that open the potential for abusive behaviors we
haven't imagined yet.<br>
<br>
The initial approach, first round, should be conservative as possible. Work can
continue taking into account what occurs during first round and some period
afterward.<br>
<br>
Tim</span></p>

<div class="MsoNormal" style="text-align: center;" align="center"><span 
style="font-size: 12pt; font-family: &quot;Times New 
Roman&quot;,&quot;serif&quot;;">

<hr size="2" width="100%" align="center">

</span></div>

<div>

<p class="MsoNormal"><b><span style="font-size: 12pt; font-family: &quot;Times 
New Roman&quot;,&quot;serif&quot;;">From:
</span></b><span style="font-size: 12pt; font-family: &quot;Times New 
Roman&quot;,&quot;serif&quot;;">Milton
L Mueller &lt;mueller@xxxxxxx&gt; </span></p>

</div>

<div>

<p class="MsoNormal"><b><span style="font-size: 12pt; font-family: &quot;Times 
New Roman&quot;,&quot;serif&quot;;">Date:
</span></b><span style="font-size: 12pt; font-family: &quot;Times New 
Roman&quot;,&quot;serif&quot;;">Tue,
25 May 2010 03:16:06 -0400</span></p>

</div>

<div>

<p class="MsoNormal"><b><span style="font-size: 12pt; font-family: &quot;Times 
New Roman&quot;,&quot;serif&quot;;">To:
</span></b><span style="font-size: 12pt; font-family: &quot;Times New 
Roman&quot;,&quot;serif&quot;;">Ron
Andruff&lt;randruff@xxxxxxxxxxxxxxx&gt;; 'Kathy
Kleiman'&lt;kKleiman@xxxxxxx&gt;; 'Graham Chynoweth'&lt;gchynoweth@xxxxxxx&gt;;
'StattonHammock'&lt;shammock@xxxxxxxxxxxxxxxxxxxx&gt;</span></p>

</div>

<div>

<p class="MsoNormal"><b><span style="font-size: 12pt; font-family: &quot;Times 
New Roman&quot;,&quot;serif&quot;;">Cc:
</span></b><span style="font-size: 12pt; font-family: &quot;Times New 
Roman&quot;,&quot;serif&quot;;">Gnso-vi-feb10@xxxxxxxxx&lt;Gnso-vi-feb10@xxxxxxxxx&gt;</span></p>

</div>

<div>

<p class="MsoNormal"><b><span style="font-size: 12pt; font-family: &quot;Times 
New Roman&quot;,&quot;serif&quot;;">Subject:
</span></b><span style="font-size: 12pt; font-family: &quot;Times New 
Roman&quot;,&quot;serif&quot;;">RE:
[gnso-vi-feb10] VI - An RSP Question..</span></p>

</div>

<div>

<p class="MsoNormal"><span style="font-size: 12pt; font-family: &quot;Times New 
Roman&quot;,&quot;serif&quot;;">&nbsp;</span></p>

</div>

<p class="MsoNormal"><span style="font-size: 11pt; font-family: &quot;Courier 
New&quot;; color: rgb(0, 51, 0);">Ron:</span></p>

<p class="MsoNormal"><span style="font-size: 11pt; font-family: &quot;Courier 
New&quot;; color: rgb(0, 51, 0);">I think you have proven my point for me quite 
nicely. </span></p>

<p class="MsoNormal"><span style="font-size: 11pt; font-family: &quot;Courier 
New&quot;; color: rgb(0, 51, 0);">&nbsp;</span></p>

<p class="MsoNormal"><span style="font-size: 11pt; font-family: &quot;Courier 
New&quot;; color: rgb(0, 51, 0);">New gTLDs have a very high risk of not 
succeeding, and .travel
demonstrates that. </span></p>

<p class="MsoNormal"><span style="font-size: 11pt; font-family: &quot;Courier 
New&quot;; color: rgb(0, 51, 0);">New gTLDs that think they are going to make 
money by
“monetizing” generic names in the new name space can look at .travel for a very
clear negative counterexample. And that was in a market with highly restricted
entry! What happens when there are 200 – 1000 of them? </span></p>

<p class="MsoNormal"><span style="font-size: 11pt; font-family: &quot;Courier 
New&quot;; color: rgb(0, 51, 0);">Because no one made money on .travel, no 
registrar was
illegitimately excluded from participating in benefits. </span></p>

<p class="MsoNormal"><span style="font-size: 11pt; font-family: &quot;Courier 
New&quot;; color: rgb(0, 51, 0);">&nbsp;</span></p>

<p class="MsoNormal"><span style="font-size: 11pt; font-family: &quot;Courier 
New&quot;; color: rgb(0, 51, 0);">There was, in short, nothing to game. 
TRAVEL’s management played
games, for sure, but not the kind of games we are concerned about and no one
was really hurt except for the investors. </span></p>

<p class="MsoNormal"><span style="font-size: 11pt; font-family: &quot;Courier 
New&quot;; color: rgb(0, 51, 0);">&nbsp;</span></p>

<p class="MsoNormal"><span style="font-size: 11pt; font-family: &quot;Courier 
New&quot;; color: rgb(0, 51, 0);">Now, clue me in: is it your belief that 
structural separations
would have solved the problems with .travel’s business? Are you saying that
‘travel would have succeeded in attracting the world’s travel and tourism
industries and would have been a stellar name space if only we had imposed
classical registry-registrar separation on it? </span></p>

<p class="MsoNormal"><span style="font-size: 11pt; font-family: &quot;Courier 
New&quot;; color: rgb(0, 51, 0);">&nbsp;</span></p>

<p class="MsoNormal"><span style="font-size: 11pt; font-family: &quot;Courier 
New&quot;; color: rgb(0, 51, 0);">But wait a minute, we DID impose that level 
of separation on it.
</span></p>

<p class="MsoNormal"><span style="font-size: 11pt; font-family: &quot;Courier 
New&quot;; color: rgb(0, 51, 0);">&nbsp;</span></p>

<p class="MsoNormal"><span style="font-size: 11pt; font-family: &quot;Courier 
New&quot;; color: rgb(0, 51, 0);">So your point escapes me </span></p>

<p class="MsoNormal"><span style="font-size: 11pt; font-family: &quot;Courier 
New&quot;; color: rgb(0, 51, 0);">&nbsp;</span></p>

<p class="MsoNormal"><span style="font-size: 11pt; font-family: &quot;Courier 
New&quot;; color: rgb(0, 51, 0);">&nbsp;</span></p>

<div style="border-style: none none none solid; border-color: 
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medium medium medium 1.5pt; padding: 0in 0in 0in 4pt;">

<p class="MsoNormal"><span style="font-size: 12pt; font-family: 
&quot;Arial&quot;,&quot;sans-serif&quot;; color: blue;">There is <u>always</u> 
something to game.&nbsp; .TRAVEL had 25,000
registrations.&nbsp; Then, when there was no one left in management to impede
them, the new management set up bulk purchase provisions and suddenly the
registry had over 200,000 registrations – some 90% of which were registered to
companies far from arm’s length from the Chair and CEO of the registry.
Monetization anyone?&nbsp; Whether they were successful in their end game or
not is of no relevance.&nbsp; What is relevant is that gaming took place in a
registry with no market power and none of it served the sponsored community:
travel and tourism entities in any way, shape or form.</span></p>

<p class="MsoNormal"><span style="font-size: 12pt; font-family: 
&quot;Arial&quot;,&quot;sans-serif&quot;; color: blue;">&nbsp;</span></p>

<p class="MsoNormal"><span style="font-size: 12pt; font-family: 
&quot;Arial&quot;,&quot;sans-serif&quot;; color: blue;">Kind regards,</span></p>

<p class="MsoNormal"><span style="font-size: 12pt; font-family: 
&quot;Arial&quot;,&quot;sans-serif&quot;; color: blue;">&nbsp;</span></p>

<p class="MsoNormal"><span style="font-size: 12pt; font-family: 
&quot;Arial&quot;,&quot;sans-serif&quot;; color: blue;">RA</span></p>

<p class="MsoNormal"><span style="font-size: 12pt; font-family: 
&quot;Arial&quot;,&quot;sans-serif&quot;; color: blue;">&nbsp;</span></p>

<div>

<p class="MsoNormal"><span style="font-family: 
&quot;Arial&quot;,&quot;sans-serif&quot;; color: blue;">Ronald
N. Andruff</span><span style="color: blue;"></span></p>

<p class="MsoNormal"><span style="font-family: 
&quot;Arial&quot;,&quot;sans-serif&quot;; color: blue;">RNA
Partners, Inc.</span></p>

<p class="MsoNormal" style=""><span style="color: blue;">&nbsp;</span><span 
style="font-size: 12pt; font-family: &quot;Times New 
Roman&quot;,&quot;serif&quot;;"></span></p>

</div>

<div>

<div class="MsoNormal" style="text-align: center;" align="center"><span 
style="font-size: 12pt; font-family: &quot;Times New 
Roman&quot;,&quot;serif&quot;;">

<hr size="2" width="100%" align="center">

</span></div>

<p class="MsoNormal"><b><span style="font-family: 
&quot;Tahoma&quot;,&quot;sans-serif&quot;;">From:</span></b><span 
style="font-family: &quot;Tahoma&quot;,&quot;sans-serif&quot;;"> 
owner-gnso-vi-feb10@xxxxxxxxx
[mailto:owner-gnso-vi-feb10@xxxxxxxxx] <b>On Behalf Of </b>Milton L Mueller<br>
<b>Sent:</b> Monday, May 24, 2010 5:57 PM<br>
<b>To:</b> Kathy Kleiman; Graham Chynoweth; Statton Hammock<br>
<b>Cc:</b> Gnso-vi-feb10@xxxxxxxxx<br>
<b>Subject:</b> RE: [gnso-vi-feb10] VI - An RSP Question..</span><span 
style="font-size: 12pt; font-family: &quot;Times New 
Roman&quot;,&quot;serif&quot;;"></span></p>

</div>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal"><span style="font-size: 11pt; font-family: &quot;Courier 
New&quot;; color: rgb(153, 51, 102);">My response to all these questions: Who 
Cares? When the TLD in
question has no appreciable market share, or market power.</span></p>

<p class="MsoNormal"><span style="font-size: 11pt; font-family: &quot;Courier 
New&quot;; color: rgb(153, 51, 102);">What is there to “game?”</span></p>

<p class="MsoNormal"><span style="font-size: 11pt; font-family: &quot;Courier 
New&quot;; color: rgb(153, 51, 102);">&nbsp;</span></p>

<div style="border-style: none none none solid; border-color: 
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medium medium medium 1.5pt; padding: 0in 0in 0in 4pt;">

<div>

<div style="border-style: solid none none; border-color: rgb(181, 196, 223) 
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padding: 3pt 0in 0in;">

<p class="MsoNormal"><b><span style="font-family: 
&quot;Tahoma&quot;,&quot;sans-serif&quot;;">From:</span></b><span 
style="font-family: &quot;Tahoma&quot;,&quot;sans-serif&quot;;"> 
owner-gnso-vi-feb10@xxxxxxxxx
[mailto:owner-gnso-vi-feb10@xxxxxxxxx] <b>On Behalf Of </b>Kathy Kleiman<br>
<b>Sent:</b> Monday, May 24, 2010 12:57 PM<br>
<b>To:</b> Graham Chynoweth; Statton Hammock<br>
<b>Cc:</b> Gnso-vi-feb10@xxxxxxxxx<br>
<b>Subject:</b> RE: [gnso-vi-feb10] VI - An RSP Question..</span></p>

</div>

</div>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">Concern with RSPs.&nbsp; Graham and Statton, I have been
thinking about this a lot, and the same questions keep coming to mind that have
been raised throughout our WG process:</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoListParagraph" style="text-indent: -0.25in;"><span 
style="">1.<span style="font-family: &quot;Times New Roman&quot;; font-style: 
normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: 
normal; font-size-adjust: none; font-stretch: normal; -x-system-font: 
none;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</span></span>How do you know? How do you know to what extent the Registry
Back End is involved in the decision-making, and setting policy? </p>

<p class="MsoListParagraph">&nbsp;</p>

<p class="MsoListParagraph" style="text-indent: -0.25in;"><span 
style="">2.<span style="font-family: &quot;Times New Roman&quot;; font-style: 
normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: 
normal; font-size-adjust: none; font-stretch: normal; -x-system-font: 
none;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</span></span>How do you audit?&nbsp; If you don’t have the
structural separation, then you don’t know what is taking place behind closed
doors. </p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoListParagraph" style="text-indent: -0.25in;"><span 
style="">3.<span style="font-family: &quot;Times New Roman&quot;; font-style: 
normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: 
normal; font-size-adjust: none; font-stretch: normal; -x-system-font: 
none;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</span></span>How do you reduce the incentive for gaming?&nbsp;
Again, I am not speaking to specific parties, who I trust. But we are trying to
set up a system for a large group, a growing group. In that case, and given
that the Registry Backend has access to considerable data, the same EPP data as
the Registry, doesn’t it make sense to treat the matter in a clear, consistent
manner:&nbsp; that the Registry, and the Registry Back End Provider, cannot own
a Registrar more than 15%?</p>

<p class="MsoNormal">&nbsp;</p>

<p class="MsoNormal">Tx for the discussion, </p>

<p class="MsoNormal"><span style="font-size: 11pt; font-family: 
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<div>

<p class="MsoNormal"><b><span style="font-size: 12pt; font-family: 
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Kleiman</span></b></p>

<p class="MsoNormal"><b><span style="font-family: 
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<p class="MsoNormal"><b><span style="font-family: 
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<p class="MsoNormal"><span style="font-size: 11pt; font-family: 
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<div>

<div style="border-style: solid none none; border-color: rgb(181, 196, 223) 
-moz-use-text-color -moz-use-text-color; border-width: 1pt medium medium; 
padding: 3pt 0in 0in;">

<p class="MsoNormal"><b><span style="font-family: 
&quot;Tahoma&quot;,&quot;sans-serif&quot;;">From:</span></b><span 
style="font-family: &quot;Tahoma&quot;,&quot;sans-serif&quot;;"> 
owner-gnso-vi-feb10@xxxxxxxxx
[mailto:owner-gnso-vi-feb10@xxxxxxxxx] <b>On Behalf Of </b>Graham Chynoweth<br>
<b>Sent:</b> Monday, May 24, 2010 12:25 PM<br>
<b>To:</b> Statton Hammock<br>
<b>Cc:</b> Gnso-vi-feb10@xxxxxxxxx<br>
<b>Subject:</b> Re: [gnso-vi-feb10] VI - An RSP Question..</span></p>

</div>

</div>

<p class="MsoNormal">&nbsp;</p>

<div>

<div>

<p class="MsoNormal" style="margin-bottom: 12pt;"><span style="font-family: 
&quot;Arial&quot;,&quot;sans-serif&quot;; color: black;">All,<br>
<br>
I had meant to raise this issue at the end of last weeks call, but
forgot.&nbsp; In any event, in the interests of making progress toward reducing
the number of open issues, I wanted to raise Statton's point again to see if we
can find some agreement on it, and if so, take it off the table.&nbsp; The lack
of more general response to Statton's question below suggests to me that the
restriction is simply an artifact of a concern that doesn't apply wheen an RSPs
doesn't control pricing policies or selection of registrars.&nbsp;
Additionally, having tried to noodle on the issue myself, I just can't see how,
so long as the separation of pricing/policy/selection authority exists, an RSP
cross ownership would give rise to the behavior that folks are concerned
about.&nbsp;&nbsp; <br>
<br>
Is there anyone out there still opposed to RSP cross ownership where there the
RSP has no control over pricing/policy/selection of registrars?</span><span 
style="color: black;">&nbsp; If so, what is/are the reason(s)?<br>
</span><span style="font-family: &quot;Arial&quot;,&quot;sans-serif&quot;; 
color: black;"><br>
Thanks,<br>
Gray <br>
</span><span style="color: black;"><br>
Graham H. Chynoweth<br>
General Counsel &amp; VP, Business Operations<br>
Dynamic Network Services, Inc.<br>
1230 Elm Street, 5th Floor<br>
Manchester, NH 03101<br>
(p) +1.603.296.1515<br>
(e) gchynoweth@xxxxxxx<br>
(w) http://www.dyn.com<br>
<br>
Confidentiality Statement<br>
<br>
Privileged and Confidential. The information contained in this electronic
message and any attachments to this message are intended for the exclusive use
of the addressee(s) and may contain confidential or privileged information. If
you are not the intended recipient, please notify Dynamic Network Services,
Inc. immediately at +1.603.668.4998 or reply to gchynoweth@xxxxxxx and destroy
all copies of this message and any attachments. This message is not intended as
an electronic signature.<br>
<br>
<br>
----- Original Message -----<br>
From: "Statton Hammock" &lt;shammock@xxxxxxxxxxxxxxxxxxxx&gt;<br>
To: Gnso-vi-feb10@xxxxxxxxx<br>
Sent: Friday, May 14, 2010 2:51:52 PM GMT -05:00 US/Canada Eastern<br>
Subject: [gnso-vi-feb10] VI - &nbsp;An RSP Question..</span><span 
style="font-size: 12pt; font-family: &quot;Times New 
Roman&quot;,&quot;serif&quot;; color: black;"></span></p>

<p class="MsoNormal"><span style="color: rgb(51, 51, 153);">Thanks for the 
updated matrix,
Berry and Kathy.&nbsp; This is very useful in helping to see the whole
“proposal landscape.” </span><span style="color: black;"></span></p>

<p class="MsoNormal"><span style="color: rgb(51, 51, 153);">&nbsp;</span><span 
style="color: black;"></span></p>

<p class="MsoNormal"><span style="color: rgb(51, 51, 153);">As I was looking 
across the
columns, my focus went to the descriptions of how the proposals treat back-end
registry service providers (RSPs). &nbsp;It appears to me that fewer than half
of the proposals (4 out of 10) want the 15% cross-ownership restriction to
apply to RSPs without qualification (I do not count the Board’s resolution
either as a “proposal” or a “policy because, to me, it’s simply a “statement,”
(an ambiguous one, too)). &nbsp;The other 6 either envision such a cap only
when the RSP controls the pricing, policies, or selection of registrars for
that TLD, or would allow complete cross-ownership so long as strict structural
or financial separation exists. </span><span style="color: black;"></span></p>

<p class="MsoNormal"><span style="color: rgb(51, 51, 153);">&nbsp;</span><span 
style="color: black;"></span></p>

<p class="MsoNormal" style="text-align: justify;"><span style="color: rgb(51, 
51, 153);">So
perhaps we’re not too far from achieving a consensus on this particular
issue.&nbsp; So, I would like to pose the question to Proposers #2 (IPC) #3
(Afflias), #4 (PIR), and #6(GoDaddy): &nbsp;What is the rationale for proposing
an *unqualified* cap of 15% on RSPs? &nbsp; To me, this seems needlessly
restrictive when the RSP is just a technical service provider with no
policymaking authority for the TLD.&nbsp; Registry operators, not their
back-end service suppliers, are responsible for pricing and policy decisions
for their TLD. &nbsp;Registry Operators also would not want, nor permit, RSPs
to act in ways that are not compliant with their ICANN agreements and policies.
&nbsp; Also, it seems that there is no incentives for the RSP to discriminate
against any registrar because they would want to see as many registrars as
possible distribute the names in the relevant extension. &nbsp; Additionally,
if my understanding is correct, the current marketplace demonstrates that
registrars (DomainPeople, for example) and their affiliates (Hostway) have
provided back-end registry services and sold names (.PRO) in those registries
without any negative consequences. &nbsp;</span><span style="color: 
black;"></span></p>

<p class="MsoNormal"><span style="color: rgb(51, 51, 153);">&nbsp;</span><span 
style="color: black;"></span></p>

<p class="MsoNormal"><span style="color: rgb(51, 51, 153);">So again to those 
proposers,
what is the rationale for an *unqualified*<b><i> </i></b>15% cap on registry
and/or registrar cross-ownership of a RSP in the absence of that RSP’s control
over the pricing, policies or selection of registrars for that TLD?&nbsp; 
</span><span style="color: black;"></span></p>

<p class="MsoNormal"><span style="color: rgb(51, 51, 153);">&nbsp;</span><span 
style="color: black;"></span></p>

<p class="MsoNormal"><span style="color: rgb(51, 51, 153);">Thanks, 
</span><span style="color: black;"></span></p>

<p class="MsoNormal"><span style="color: rgb(51, 51, 153);">&nbsp;</span><span 
style="color: black;"></span></p>

<p class="MsoNormal"><span style="color: rgb(51, 51, 153);">Statton 
</span><span style="color: black;"></span></p>

<p class="MsoNormal"><span style="color: navy;">&nbsp;</span><span 
style="color: black;"></span></p>

<p class="MsoNormal"><b><span style="color: gray;">&nbsp;Statton Hammock <br>
</span></b><span style="color: gray;">&nbsp;Sr. Director, Law, Policy&nbsp;&amp;
Business Affairs </span><span style="color: black;"></span></p>

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